Largest Olive Oil Producer Says Industry Faces Toughest Times

(AmericanProsperity.com) – The world’s largest olive oil producer, Spain’s Deoleo, says that the industry needs to go through a “profound transformation” as it goes through some of its toughest moments. Issues from climate change, high prices, high-interest rates, and soaring inflation have taken a huge toll on the olive oil industry.

Spain has had two years of extremely high temperatures, which has limited the supply of olive harvests and has led to an increase in price, which people have noticed. Spain makes up over forty percent of the world’s olive oil production, which means the pricing situation could affect millions of buyers.

Miguel Angel Guzman, chief sales officer at Deoleo, said, “We are facing one of the most difficult moments in the sector’s history. Strong inflation along with high-interest rates and unfavorable olive oil harvest forecasts has caused prices to increase considerably.”

Extra virgin olive oil went from about 7.8 euros to 9.2 euros which has been a price that has been noticed by shoppers. The price has started to cool a bit since the production of olives has increased due to the rain brought on in the spring months.

Guzman said that they knew this price increase would level out as the harvest yields are back to normal numbers, but he touches on the fact that they will not know the harvest amount until it’s time to harvest.

Although things seem to be getting back to normal, there is a push from the oil industry for a change in innovation, sustainability, and quality “with a focus on the consumer.”

Guzman spoke out about the importance of change in the industry to help avoid issues like this in the future, especially when it comes to climate change. When asked what could be done to better protect the olive trees, Guzman said “The sector has to take the reins and all the actors that are part of it must transform if we want to reduce price volatility and increase its predictability.”